Refer to the above diagram, which shows three demand curves for coffee. Which would cause the change in the demand for coffee illustrated by the shift from D1 to D3?
A. A decrease in the price of tea
B. An increase in consumer incomes
C. A technological improvement in the production of coffee
D. A decrease in the price of sugar
Answer: A
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One key assumption lying behind the policy irrelevance proposition is that
A) wages are "sticky" downward. B) prices are "sticky" upward. C) the rational expectations hypothesis is correct. D) markets are not purely competitive.
If you are willing to sell your lawn mower business for $355,00 . and someone offers you $420,00 . for it, this transaction will generate:
a. There is no surplus created b. $65,00 . worth of seller surplus and unknown amount of buyer surplus c. $30,00 . worth of buyer surplus and $35,00 . of seller surplus d. $65,00 . worth of buyer surplus and unknown amount of seller surplus
If demand is elastic, then when price rises, total revenue will decrease.
Answer the following statement true (T) or false (F)
Figure 5-17
In Figure 5-17, the consumer would prefer
A. D to C. B. B to D. C. C to B or A. D. D to A but not B.